Goldman Sachs sued again by Hollywood business managers
Goldman Sachs Group Inc. was sued by a Hollywood business management firm that claims it was strung along as a mergers and acquisitions client while the bank pursued a much larger $7 billion deal with a private equity firm.
In a suit filed Thursday in New York state court, KSFB Management said it was deceived by Goldman when it was seeking to sell itself in 2022. KSFB says it gave Goldman confidential information that helped the bank arrange Focus Financial Partners’ February 2023 acquisition by Clayton Dubilier & Rice.
KSFB’s claims stem from a complicated series of transactions. Nigro Karlin Segal Feldstein & Bolno, the management firm led by legendary Hollywood accountant Mickey Segal, sold its operational assets to Focus, in 2018. Nigro Karlin’s principals then formed KSFB but continued to provide management services to Focus under contract. According to Variety, KSFB’s principals have managed business affairs for celebrities including Beyonce, Drake and Adam Levine.
Focus, an investment group specializing in wealth and business management firms, and its co-founder Leonard Chang were also named as defendants, as was Goldman banker Patrick Fels.
Goldman disputed the KSFB allegations. “As we said when the plaintiff tried — and failed — to bring this lawsuit in California, these claims are without merit,” Goldman spokesperson Sophia Anthony said. “From the outset of our engagement, Goldman Sachs acted fairly and honestly to run an efficient, competitive process.”
Focus didn’t immediately respond to requests for comment. Alex Spiro, the lawyer for KSFB, declined to comment.
The New York suit is the second filed by KSFB over the matter. The firm sued last year in Los Angeles, but that case was dismissed. Goldman had
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